UK drives European equity return for February

UK equitiesThe UK was the greatest contributor to the 2.89% total return from European equities in February, as measured by the S&P Europe 350 Index. With a return of 1.04%, the UK beat returns from Switzerland and Germany, who were in second and third place respectively with 0.49% and 0.35% returns. Norway was the only European economy to not deliver a positive return, said S&P Dow Jones Indices (S&PDJI). Tim Edwards, senior director of index investment strategy at S&PDJI, said the return from the index “defied logic” given political uncertainty in Europe. He said the upcoming French and Dutch elections, together with the potential start of Brexit negotiations, would make it “intriguing to see whether the equity markets’ positive performance will continue”. Virtually all underlying indices for Europe were positive last month, with momentum investors emerging as the “ultimate” winners as they gained a 6.52% return from S&PDJI’s Europe 350 Momentum Index. Healthcare, consumer staples and IT were the best sector performers. Just two sectors recorded losses: energy and financials. But Edwards added: “Reading between the lines there are some signs of nervousness: defensive sectors, and defensive strategies, largely outperformed their peers.” ©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.


ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.


Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.